Buying higher auto liability limits is seldom important.....until it is. Consider this....the minimum limits that are required in Texas for auto insurance are $30,000 per person and $60,000 per accident for bodily injury and $25,000 per accident for property damage. If you cause injuries or property damage above these amounts, the money to settle the claim is going to come out of your "hip pocket". Cause a new luxury auto to be totaled and you'll be tapping "Hip Pocket National" for the difference above your minimum $25,000 property damage coverage.

2. Buying higher limits can save you premium dollars!

This concept is strange but some insurance companies give discounts to new customers that have higher limits on their prior policy. I guess they have found that customers who purchase high liability limits are less likely to have claims.

3. It's the right thing to do!

So you're broke and the saying "you can't squeeze blood out of a turnip" applies to your finances. If you have an accident causing big damages, wouldn't you want to pay for the mess you've caused? You don't have the aforementioned "Hip Pocket National" to pay the bills, but you can have the insurance coverage to do so.

4. Keep the insurance company defending you!

If you cause a big claim, your policy covers the legal expenses if you are sued. There's no limit on the amount of attorney fees covered by the policy so at least the $50,000 in legal fees will be paid. But there is a BIG catch!! The policy says that when the insurance company exhausts your limits of liability, they no longer have to defend you. So if it looks like the defense costs are going to be hugh, the insurance company cuts their losses by paying the policy limits (your measly $30,000 for bodily injury and/or $25,000 for property damage) and ending your defense. To keep the insurance company paying those large legal fees, buy high liability limits! Sabe?

Why buy higher auto liability limits? It's all about protecting you and your assets....make the insurance company work for you by keeping you out of financial ruin.

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